Following profit decline in first quarter: Lululemon lowers earnings forecast
A Lululemon store Credits: Lululemon Canadian sportswear retailer Lululemon Athletica Inc. recorded solid revenue growth in the first quarter of the 2025/26 financial year, but saw a slight decline in profits. Overall, the results, which the Vancouver-based yoga apparel specialist published on Thursday evening, came as little surprise: they were largely in line with analysts’ expectations. However, the company still lowered its profit forecast for the current year. Strong growth in China boosts revenue development In the first quarter, which ended on May 4, Lululemon generated revenue of 2.37 billion dollars. This represented an increase of seven percent compared to the same period last year. Adjusted for exchange rate changes, revenue grew by eight percent. The increase was mainly due to the opening of new stores. On a like-for-like (LFL) basis, the company's revenue increased by only one percent. In the Americas, Lululemon achieved revenue growth of three percent (+four percent in constant currency). The international business developed significantly more dynamically, with revenue increasing by 19 percent (+20 percent in constant currency), not least thanks to above-average growth in mainland China (+21 percent). Net profit shrinks by two percent The company increased its operating margin from 57.7 to 58.3 percent, but had to post significantly higher distribution costs and one-off charges. As a result, operating profit increased by only 1.4 percent to 438.6 million dollars. Net profit fell by 2.1 percent to 314.6 million dollars. Due to share buybacks, however, diluted earnings per share increased from 2.54 dollars to 2.60 dollars, slightly exceeding market expectations. Management lowers profit forecast In view of the available figures and current market conditions, management lowered its earnings forecast for the full year. It now expects diluted earnings per share in the range of 14.58 dollars to 14.78 dollars for FY2025/26. Previously, 14.95 dollars to 15.15 dollars had been expected. The revenue target, on the other hand, remained unchanged. It therefore continues to be 11.15 billion dollars to 11.30 billion dollars, which would represent an increase of five to seven percent compared to the previous year. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
Canadian sportswear retailer Lululemon Athletica Inc. recorded solid revenue growth in the first quarter of the 2025/26 financial year, but saw a slight decline in profits.
Overall, the results, which the Vancouver-based yoga apparel specialist published on Thursday evening, came as little surprise: they were largely in line with analysts’ expectations. However, the company still lowered its profit forecast for the current year.
Strong growth in China boosts revenue development
In the first quarter, which ended on May 4, Lululemon generated revenue of 2.37 billion dollars. This represented an increase of seven percent compared to the same period last year. Adjusted for exchange rate changes, revenue grew by eight percent.
The increase was mainly due to the opening of new stores. On a like-for-like (LFL) basis, the company's revenue increased by only one percent.
In the Americas, Lululemon achieved revenue growth of three percent (+four percent in constant currency). The international business developed significantly more dynamically, with revenue increasing by 19 percent (+20 percent in constant currency), not least thanks to above-average growth in mainland China (+21 percent).
Net profit shrinks by two percent
The company increased its operating margin from 57.7 to 58.3 percent, but had to post significantly higher distribution costs and one-off charges. As a result, operating profit increased by only 1.4 percent to 438.6 million dollars.
Net profit fell by 2.1 percent to 314.6 million dollars. Due to share buybacks, however, diluted earnings per share increased from 2.54 dollars to 2.60 dollars, slightly exceeding market expectations.
Management lowers profit forecast
In view of the available figures and current market conditions, management lowered its earnings forecast for the full year. It now expects diluted earnings per share in the range of 14.58 dollars to 14.78 dollars for FY2025/26. Previously, 14.95 dollars to 15.15 dollars had been expected.
The revenue target, on the other hand, remained unchanged. It therefore continues to be 11.15 billion dollars to 11.30 billion dollars, which would represent an increase of five to seven percent compared to the previous year.
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
This article was translated to English using an AI tool.
